SteveSpeak

For anyone still wondering how the U.S. got into the economic mess it is now entangled in, this entry is for you. Here is a hint, as put by Alan Pisarski in this Washington Post article.

“You keep doing what you’re doing, and you just keep assuming that growth is going to go on forever. And then at some point it just drops out from under you … ”

Alan was speaking about the glut of automobiles now on the market since people have stopped buying, but it applies equally well to the majority of the overall mess. I thought we might have learned from the dot.com crash, but people just found a new ‘get rich quick’ scheme to chase after. But, the bigger concern I have is if people have learned any lessons… and not just about investing.

Most public companies are run as if they are operating in the above fantasy world… the growth just can’t possibly stop or even slow. Making constant profit is no longer the mark of a good investment, but year over year growth by some percentage X. In places I have worked, X was often over 100. It doesn’t exactly take a rocket-scientist to figure out that this can’t continue. The damage this kind of investing has done to companies is horrific. Super short term thinking and operation has become the norm.

The only hope the U.S. has of getting out of trouble is if the average person, as well as the government, stop living on borrowed money… AND companies start running in a more long-term, sustainable manner. If not, the house of cards will fall… if it hasn’t already started beyond repair.

About the Author

Steve Wilkinson • I enjoy creating things, whether artistic or more technical. Website design and 3D rendering blend these two skill-sets quite nicely (which is probably why I love them so much!). While I am not 'officially' trained as an artist, I have a number of years of experience working in related fields, such as technical drafting, 3D rendering & animation, and industrial design. I have even done some print work over the years. On the technical side, my experience ranges from being an independent consultant to a senior member of an IT staff at a Fortune 100. I'm also a husband, father, and Christian apologist.
I am the founder and a designer/consultant at cgWerks. I am also a director/educator at TilledSoil.org, a Christian apologetics ministry. My personal blog is at SteveSpeak
You can follow me on Twitter @SteveW928 or connect with Steve/cgWerks/TilledSoil.org on Facebook, or catch up with me on Google+.